Emperor overruled by Insolvency Service
The director of a window installation company has been banned from being a director for seven years after taking deposits from customers with no reasonable prospect of being able to deliver the goods.
Kelly Ord, of Coventry, the director of Emperor Windows Limited, signed a disqualification undertaking after an Insolvency Service investigation revealed he had taken deposits from 78 customers totaling £85,552 between January 2016 and 1 July 2016, for goods and services that it then failed to supply.
Mr Ord had sought advice regarding debts owed by Emperor Windows by February 2016, but still went on to take deposits.
Commenting on the disqualification, Kevin Read, Official Receiver at the Insolvency Service, said:
Mr Ord caused Emperor Windows Limited to take deposits from customers when the company was insolvent and without a reasonable expectation that services would be provided. The company failed to provide services to these customers and losses were incurred as a result.
Company directors should note from this enforcement result that actions of this kind will lead to serious censure.
This disqualification is a reminder to others tempted to do the same that the Insolvency Service will rigorously pursue enforcement action and seek to remove from them the privilege of trading with limited liability to protect the public for a lengthy period.
Notes to editors
Emperor Windows Limited (CRO No. 07459593) was incorporated on 3 December 2010 and traded from 1 Aintree Close, Coventry, CV6 5QD.
The winding-up petition was presented on 18 April 2016 and the winding-up order was made on 28 July 2016.
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.
The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.
BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.
The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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Published: 4 January 2017
From: The Insolvency Service